How and Where to Margin Trade Bitcoin?

The world is divided, while some support crypto Margin trading to be a blessing, few others are against it. In spite of the clash, speculators and investors are investing and making a fortune and others who are losing it. Which side are you at? Until you make up your mind, how about knowing How to Margin Trade Bitcoin? Exchanges that support Bitcoin Margin Trading?

Let’s get started –

How To Margin Trade Bitcoin?

Margin Trading – a process of borrowing money from an exchange/broker to fund a large amount of investment. While in our last post we described adopting to stop loss would be a good idea, make sure to follow other Crypto Margin Trading Tips as well.

The Margin Trading concept, when applied to Bitcoin, is known as Bitcoin Margin Trade. So for example –

The current price of Bitcoin is $600, and as an investor, you are expecting the price to grow.

To make a profit, you are willing to buy Bitcoin now and sell them later at a higher price.

Balance

$300

Borrowed money

$300

Leverage

1:2 leverage

Closing Position when the price hits $800

$300 of balance is returned.

Profit earned

~$200 [ $800 – $300 – $300] fees not included.

Exchanges to Margin Trade Bitcoin

BitMEX

BitMEX or Bitcoin Mercantile Exchange is a peer-to-peer trading platform that also offers leveraged contracts that are bought and sold in Bitcoin. At BitMEX you would find crypto derivative instruments being sold and bought on margin trade.

BitMEX, the only exchange in the market that could provide 100x leverage, i.e., for every BTC/XBT you own, you can trade as if you have 100 BTC/XBT. You can also trade Bitcoin Cash at 20x leverage. It’s worth noting that BitMEX only accepts BTC deposits and no other currency, even the profit and loss are in BTC.

To start off trading on BitMEX you can register here. You just need your email to set up and could secure your wallet using two-factor authentication. Bitmex is very high risk or high reward ether leverage trading; please trade cautiously knowing the risks.

Cex.io

If you are looking to invest a large sum of money, CEX.io is a decent place to start with crypto margin trading. It offers Bitcoin, Ethereum and Bitcoin Cash margin trade with 3x leverage. Providing services across the globe, they accept Visa, Mastercard, bank transfer and cryptocurrency payments.

To start off, you can register here, and once the account is verified, you may start trading.

Kraken

Kraken, one of the largest Bitcoin and altcoin exchanges in the USA offers crypto margin trading with the advantage of different leverage options for different pairs. Check here different currency pairings that could be traded on margin using leveraged orders.

To start off, investors can register on their website using the email id, that follows with KYC verification. Usually, it takes up to 7-10 days to get the verification completed.

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Published by Samiksha Seth

Samiksha Seth a Storyteller with over 14 years of industry experience in BFSI, Fintech, e-commerce and currently exploring the world of Blockchain. She has worked on projects for some of the world’s leading financial companies both in India, Europe, and North America. She writes extensively on Fintech, Blockchain and other evolving technologies A Tech Enthusiast, an avid blogger, a Reiki practitioner and a curious mind. Samiksha does not hold any value in cryptocurrency or its projects.
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